Global Diesel Exhaust Fluid Market– Insights
Diesel Exhaust Fluid (DEF), also known as ‘AdBlue’, is an odorless, colorless and non-flammable mixture of urea (32.5%) and de-ionized water (67.5%). Diesel exhaust fluid is injected into the exhaust pipe in order to reduce the nitrogen oxide (NOx) emitted through the diesel engine exhaust. Selective Catalytic Reduction technology is extensively used for catalytic conversion of NOx into non-harmful nitrogen and water. Inside the exhaust pipe, the DEF vaporizes and decomposes into ammonia and carbon dioxide. Those two compounds then react with oxygen and detrimental nitrogen oxides inside the vehicle’s selective catalytic reduction (SCR) catalyst. This produces three gases, namely, nitrogen, water vapor, and carbon dioxide. The shelf life of diesel exhaust fluid is directly related to the temperature at which it is stored. Therefore, special storage tanks made up of polyethylene plastic or stainless steel are used to maintain quality of DEF.
Prime factors such as strict NOx emission regulations in North America, Europe, and Asia Pacific, increasing demand for commercial vehicles fuelled by substantial growth of automotive industry across the world, technological advancement in selective catalytic reduction technology such as implementation of catalytic converter, are driving growth of global diesel exhaust fluid market. However, shifting consumer preference towards non-fossil fuel engines such as electric cars and hybrid vehicles, changing government regulations about diesel vehicles in order to reduce air pollution, low product differentiation are major challenges for growth of diesel exhaust fluid market.
Among vehicle type, passenger vehicles is projected to be the fastest growing segment over the forecast period. Most of the commercial vehicles are equipped with the Selective Catalytic Reduction technology after implementation of EPA’s 2010 diesel emission standards. Moreover, favorable growth in passenger vehicle sales is projected to create positive environment for market growth. According to European Automobile Manufacturer’s Association, in November 2017, sales of passenger cars in Europe grew by 5.9% year on year. Therefore, passenger vehicles segment represents an immense opportunity for growth of diesel exhaust fluid.
North America accounted for highest market share in global diesel exhaust fluid market in 2016 and the region is projected to maintain its dominance throughout the forecast period. The growth of North America diesel exhaust fluid market is mainly driven by stringent regulations of Environmental Protection Agency (EPA) on emission of diesel engine exhaust gases. In the U.S., emission from vehicles is regulated by EPA’s Clean Air Act. EPA sets a limit of 0.20 grams emitted per brake horsepower-hour (g/bhp-hr). Moreover, EPA has set a minimum fluid interval of 4000 miles for light duty vehicles and light duty trucks. Such factors are playing important role for North America market growth.
According to Coherent Market Insights study, the global diesel exhaust fluid market was valued at US$ 10.96 billion in 2016 and is projected to reach to US$ 24.90 billion by witnessing a CAGR of 9.72%, in terms of revenue, over the forecast period (2017 – 2025).
Global Diesel Exhaust Fluid Market Share, by Region, 2016
North America held highest market share of 55.38% in the global diesel exhaust fluid market, in 2016 and the region is projected to maintain its dominance throughout the forecast period. Owing to favorable growth of OEM sector especially in Europe and Asia Pacific, these regions are expected to indicate significant growth in the market over the forecast period.
Major Players in the Global Diesel Exhaust Fluid Market
The major players operating in the global diesel exhaust fluid market includes Yara International, BASF SE, CF Industries Holdings Inc., Agrium Inc., Cummins Inc., Shell ROTELLA (Royal Dutch Shell Inc.), Mitsui Chemicals Inc. and KOST USA.
Diesel exhaust fluid (DEF) is a high purity chemical solution, which contains 32.5% (v/v) Urea with pure deionized water. The main application of DEF is in Selective Catalytic Reduction Process in order to reduce NOx concentration of exhaust from both on road & off road diesel engines. DEF gained popularity after implementation of level-3 regulation by Environmental Protection Agency about reduction of NOx emission.
The growth of global diesel exhaust fluid market is mainly driven by growing demand for diesel exhaust fluid to reduce NOx emissions. Among vehicle type, commercial vehicles segment, held highest revenue share in global diesel exhaust fluid market in 2016. Owing to increasing demand for diesel exhaust fluid in commercial vehicles fuelled by increasing number of LCV & HCV, the trend is projected to be continued over the forecast period. North America dominated in global diesel exhaust fluid market in 2016 and the region is projected to maintain its dominance in the near future. The growth of North America diesel exhaust fluid market is mainly driven by strict government NOx emission regulations. Asia Pacific is projected to indicate significant growth due to favorable growth of automotive industry in emerging economies such as China, India and various others.
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